1 TRANSLATION OF THE PROCEEDINGS AND ... - APFA News

The Ministry of Finance will study these proposals and draw up detailed rules
on the proposed incentives.
In addition, the Royal Government is also currently studying a Foreign
Investment Policy in order to attract international capital, technology and
managerial skills. Foreign investment will be sought through collaboration, joint
ventures, and foreign direct investment. Foreign investment will help us
overcome the capital and technology gap as well as provide access to
international markets. The experience in many countries has shown that foreign
investment is one of the most effective mechanisms to accelerate development,
especially in the export sector.
Bhutan is also preparing the Memorandum on Foreign Trade Regime, as the
first step towards membership in the world Trade Organization. Membership in
the WTO will enable us to benefit from trade in a stable and predictable
environment. However, we have to remember that such benefits will be
forthcoming only if we have a dynamic export sector. Therefore, we need to
make continuous efforts to identify and promote niche industries in Bhutan.
In view of our unique cultural heritage, strong traditions and pristine natural
environment, Bhutan continues to be a popular tourist destination. Tourism is
important for the economy, as it is the single largest source of hard currency. In
the previous year, 7,559 tourists visited Bhutan and the gross earnings from the
tourism industry accounted for US $10.5 million marking an increase of about
18 percent in gross earnings from the previous year.
While the Royal Government will always ensure the policy of high value, low
volume tourism, there is immense potential for growth in this sector considering
that tourism is the largest industry in the world. In order to boost this sector,
major initiatives are being taken to expand the infrastructure as well as improve
the quality of services by introducing greater professionalism. As mentioned
earlier, the Royal Government has approved joint ventures with foreign firms in
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